Question

Job Costs At the end of August, Rothchild Company had completed Jobs 40 and 42. Job 40 is for 10,000 units, and Job 42 is for 11,000 units. The following data relate to these two jobs: On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit. During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42. Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be 90,000. a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. Job 40 Job 42 b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to two decimal places. Job 40 Job 42

Answer 1

ab Wrap Text Paste @ Copy Format Painter General BIU- 13.A SEE Merge & Center 8 9 %) €9.00 Clipboard Font Insert Delete Format 4 Share AutoSum- Z Fili- Sort & Find & Clear Filter - Select Editing Conditional Format as Cell Formatting Table Styles Styles Alignment Number K10 X for Cells B D E F G H 1 M JOB 40 2 3 Direct Materials Units Rate Amount 5,000 8 40,000 Direct Labour Hours Rate Amount 3,500 25 87,500 Overheads Hours Rate Amount Total = D+G+J Total Units Cost per Unit = K/L 3,500 9 31,500 1,59,000 10,000 15.90 4 5 6 Overhead Rate = Total Overheads / Total Direct Labour Hours Overhead Rate = 810,000 / 90,000 Overhead Rate = $ 9 per DLH 8 9 10 Balance on Job Cost Sheets Cost 11 1,59,000 15.90 B per Unit 12 13 14 10 Sheet 662 Sheet 663 Sheet 664 Sheet 665 Working She/$ 666 Sheet 667 | + Ready B E 16096

REVIEW View Help Tell me what you want to do X Cut LG Copy Calibri 11 VA A Share Custom 1 Paste AutoSum - ab Wrap Text SEE Merge & Center - M Format Painter U O-A- WE - % Fill - insert Delete Format Clipboard Font Conditional Format as Cell Formatting Table Styles Styles Alignment Clear - Sort & Find & Filter - Select - Number Cells H11 X Editing 20.3 B D E F G H K 1 M JOB 42 2 3 Direct Materials Units Rate Amount 6,200 14 86,800 Direct Labour Hours Rate Amount 4,200 23.50 98,700 Overheads Hours Rate Amount Total = D+G+J Total Units Cost per Unit = K/L 4,200 9 37,800 2,23,300 11,000 20.30 4 5 6 7 Overhead Rate = Total Overheads / Total Direct Labour Hours Overhead Rate = 810,000 / 90,000 Overhead Rate = $ 9 per DLH 8 9 10 A Balance on Job Cost Sheets Cost per Unit 2,23,300 20.30 11 B 12 13 14 > Sheet 662 Sheet 663 | Sheet 664 Sheet 665 Working Sheet 666 Sheet 667 Sheet 668 + . 1 Ready 1609